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State Senator Calls For Fair Competition In Marketplace

The Main Street Fairness Act would bring in millions of dollars in tax revenue currently lost to online retailers.

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If the measure passes at the Statehouse, Kenley hopes to use the additional revenue to eliminate other Indiana taxes.

Noblesville Senator Luke Kenley said the legislation recently introduced in Congress would allow for fair competition in the marketplace.

“Hoosier bricks-and-mortar businesses are at competitive disadvantage with online retailers who often do not collect sales taxes on Internet purchases, costing our state as much as two hundred million dollars annually,” Kenley said.

Most online retailers do not need to charge sales tax unless they have a physical location in the state where the purchase is being made.  If the measure passes, Kenley hopes to use the additional revenue to eliminate Indiana’s inheritance tax and lower others so Hoosier taxpayers are not hit too hard by the increased collection of sales taxes.

  • Sten Wilson

    Dear Brandon Smith,

    Please correct you closing statement regarding Hoosier taxpayers being hit too hard by increased collection of taxes. Hoosiers will actually wind up paying less as a result of the passage of the Main Street Fairness Act. Using other states who have recently raised state fees and existing taxes in an attempt to compensate for the lost sales tax revenues from online retail is the best way to help explain my point.

    The state of CT recently imposed the largest tax increase in state history to make up for lost sales tax revenue resulting from evading sales and use tax legally due via online purchases. Once beneficial clothing exemptions have been eliminated, the sales tax rate went up .45% on goods under $1000 and on luxury goods over $1000 the sales tax is now %7. Property taxes are also increasing in CT as well as other states to make up for the lost sales tax revenues. The state of RI recently increases all park entrance and parking fees by %100 this past year.

    My point is most citizens in every state do not realize that the few dollars they illegally evade to pay on online transactions is ultimately costing us all more. Enabling states rights to collect tax legally due will proportionately  correct the imbalances in each states’ budgets. The other looser is the current scenario is  actually the low income wage earner who is unable to participate in tax evasion practices. Unable to access the credit necessary for online transactions low income families are forced to shop locally paying increased tax rates while individuals with access to credit choose to evade their obligations. local merchants are closing at an alarming rate recognized by an mall vacancy rate now over %20. Those closing stores are the very businesses providing local jobs enabling families to pay their bills. “No stores….no jobs.”

    The Main Street Fairness act will actually decrease the now increasing burden on individuals and businesses by leveling the playing field for all merchants by eliminating the current unfair pricing advantage, eliminate states from increasing other harmful taxes and fees, and ultimately saving businesses keeping people in work continuing innovation and productivity. The Main Street Fairness Act is long overdue and I commend Senator Luke Kenley for his leadership and foresight  doing what is right for our country. 

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